Most UK adults have their current account with one of the big four high street banks — Barclays, HSBC, Lloyds, or NatWest. Many have been with the same bank for decades. But the current account market has transformed dramatically in recent years, and the best accounts now offer genuinely valuable features that the traditional banks simply do not match.
- What to look for in a current account
- The app-based challengers
- Accounts that pay interest or cashback
- The Current Account Switch Service
What to look for in a current account
Interest on balances — some accounts pay meaningful interest on credit balances, turning your current account into a partial savings account. Cashback on bills — several accounts offer 1-3% cashback on direct debits including utilities, council tax, and broadband. Switching incentives — banks regularly offer £100-£200 to switch. Fee-free overseas spending — increasingly standard on app-based accounts.
The app-based challengers
Monzo and Starling have transformed expectations for what a current account should look like. Both offer instant spending notifications, automatic spending categorisation, easy savings pots, fee-free overseas spending, and a genuinely excellent mobile experience. Neither pays significant interest on current account balances, but their functionality and user experience are outstanding.
Accounts that pay interest or cashback
Nationwide FlexDirect pays a competitive rate of interest on balances up to £1,500 for the first year. Chase UK pays 1% cashback on everyday debit card spending, capped annually. Virgin Money and First Direct regularly appear in best-buy tables for current account features.
The Current Account Switch Service
Switching is protected by the Current Account Switch Service, which guarantees a seven-day switch and redirects all payments for three years. Switching takes minutes online. Banks frequently pay switching incentives of £100-£200 that make switching immediately profitable.
Bottom line
If you have not switched your current account in the last three years, you are almost certainly missing out on better features, cashback, or a switching bonus. Compare your options and switch — it takes less time than most people expect.